Crude Oil
Oil Trading

What is Crude Oil ?

Crude oil is one of the most important natural resources and one of the most frequently traded commodities. On the HBL platform, clients can trade spot crude oil in form of CFD transaction, which does not involve the commodity itself, and only uses the margin as a risk guarantee.

Its trading system is T+0. Clients can buy or sell with no price limit. For investors, investment in crude oil is more valuable than other types of transactions. The HBL platform currently offers customers the most widely traded US crude oil (West Texas Intermediate) and Brent crude, allowing investors to trade easily with just one account.

Trading Crude Oil
Oil Trading

You could argue that the world runs on oil. The U.S. alone consumes nearly 20 million barrels a day, an astounding number, when you consider that the average barrel can run 40 cars. Global demand for oil is strong, and as an investment, speculators buy and sell based on their opinions of the fluctuation in the market, whether do to pipeline initiatives, reserve supplies and even war.

Crude oil occurs naturally in underground rock formations. Extraction can be complicated and occurs both on and off shore. Crude oil needs to be refined for petroleum products like gasoline. Depending on the source, crude is labeled by its viscosity (light and heavy), and sulfur content (sweet or sour). Popular crude oil deliverable grades are West Texas Intermediate, U.K. Brent, Norwegian Oseberg Blend and others.

To trade oil as a CFD, you need to understand the elements of the contract. If you want to trade West Texas Intermediate, for example, look for USOIL, since that grade is traded on the New York Mercantile Exchange (NYMEX). If you think the price of oil will rise, you buy USOIL, multiplying the buy price by the number of contracts you want to trade, or barrels in this case.

Why Choose To Trade Crude Oil?

For investors, investment in crude oil is more valuable than other types of transactions.

  • Low spreads and low transaction costs

  • Two-way trading, with hedging function

  • No price limit, low risk

  • Price fluctuations are affected by supply and demand, and the market is easy to grasp.

  • Quick execution, no repeat quotes

  • Support various orders types such as stop-loss

Oil Trading

Trading Data

Trading crude oil with HBL, customers can enjoy advanced trading tools, competitive spreads and efficient execution speed, regardless of the bull market or bear market.

Oil Trading

HBL kindly reminds you to consider the risk of high leverage ratio. Relatively small market fluctuations may make great impact on the funds you have deposited or will deposit, which may be detrimental to you and may be beneficial to you. You may lose more than your initial deposit and you will need to deposit additional funds to cover your position.